E3-12 Recording Journal Entries and Determining Net Income and Net Profit Margin [LO 3-2, LO 3-3, LO 3-5] Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February Feb. 1 Paid $355 for rent of hangar space in February. Feb. 4 Received customer payment of $1,230 to ship several items to Philadelphia next month. Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($1,550 cash). Feb. 10 Incurred and paid $2,400 in pilot wages for flying in February. Teb.14 Paid $290 for an advertisement run in the local paper on February 14. Feb.18 Plew cargo for two customers from Dallas to Albuquerque for $2,395; one customer paid $875 cash and the other asked to be billed $1,520. Feb.25 Purchased on account $1,430 in supplies for future use on the planes. Required: 1. Prepare accrual basis journal entries for each transaction 2. Calculate the company's preliminary net income. 3. Calculate the company's net profit margin expressed as a percent